Annika Bosanquet
All wrapped up
In November 2004, Annika Bosanquet won an Enterprising Young Brit award for Wrapology, the funky packaging company she runs with her younger brother Tom. She explains what inspired her to become her own boss.
What gave you the idea for Wrapology?
I studied anthropology at the London School of Economics, which included a module on 'Giving'. The underlying principle of other societies in 'Giving' is that it's not what you give, but how you give it.
For example, in the once-illiterate society of the Trobriand in Melanesia (part of Papua New Guinea), giving is a symbolic action for which, as you give either the shell necklace or shell bracelet that have been circulating the islands for hundreds of years, stories about who 'looked after it' before you, must be told. In this way, giving kept the history of the Islands remains alive.
What were you doing at the time you had the idea?
I'd been working at Nike for five years, within print, packaging and product launches. Nike is an incredible success story, started only 35 years ago by two ex-athletes who wanted to make and sell the best running spikes on the market.
It was as clear to them then as it is today: that it doesn't matter what you sell, it's how you sell it that's responsible for volume sales. Presenting a basketball trainer to the consumer in a reusable chrome briefcase increases the perceived value against a cardboard box.
Initially, it's the packaging and hype that counts; it's only after the product has been tried and tested that customer loyalty is represented through repeat business. That made me think that packaging could be a very powerful product in its own right.
What was the first thing you did to try and make the idea happen?
Eight months of market research, reviewing packaging in Europe, the States and Japan, helped us to understand an alternative approach to till-point wrapping services.
Research revealed that small-to-medium-sized companies in particular could benefit from bold, colourful packaging to boost the sales of their products.
Promisingly for us, further research highlighted the fact that UK retailers supplying packaging direct to businesses were scarce, which led to us aiming to fill this market void. Presenting some ideas to prospective customers helped us ascertain what might be interesting to the UK market.
Before launching properly, we exhibited at two UK tradeshows to test products and prices, and learn from customers about our competitors.
Who helped you, and how?
Initially, we had finance from a Business Angel to get us started and then a working capital overdraft from Natwest. With support from our Angel, we were given a DTI loan through the Bank of Scotland.
We had an enormous amount of support from family and friends and not least, we had suppliers and customers who believed in us by supplying and buying from us.
When did the idea start looking viable?
Once the concept was shaped, my younger brother Tom joined, initially to do global sourcing, and then went on to head up sales. This is when the business started to look viable.
I had a partner who I knew had the best interests of the business at heart, and this freed me up to start developing and executing the strategy. Together, we have doubled our turnover and our staff year on year.
Tom also developed our website strategy; our advertising centres almost entirely on the internet (3/4 million hits per month), and product sales are conducted both through the website and over the phone.
The company has developed to become a wholesaler of bags, boxes, wrapping paper and accessories in a wide range of expressive and innovative styles.
What obstacles did you encounter?
The hardest obstacles to overcome were learning that selling is key to our survival; we left our sales strategy almost too late, focusing too much on research and spending too much time trying to get the 'right' pieces of the business in place.
This cautious approach put our cash-flow under too much stress at the beginning; we became too wrapped up in the little problems (eg saving £50 on a printer) instead of the Big Idea (eg investing in an on-line shop for £2500).
When did the idea officially get up and running?
We registered the company at Company House on 30th March 2001 but get our first order until 10th October 2001. Even with this order, no money was received until January 2002!
Future plans for the idea?
Although our model is business-2-business (B2B) Tom and I see Wrapology having a retail presence, selling quality giftwrap and personalised packaging directly to the consumer (B2C).
Our goal is to continue growing aggressively for the next three years, striving always to offer the best service in our sector.
Advice to anyone else who wants to make their idea happen?
- Initially put all other life-plans on hold; you will need every second you get to nurture and navigate your business. You are now the captain of a small boat in rough waters; forget that at your peril!!
- Share the burden with a partner if you can; bring in a mentor as early as possible with whom you can talk through your business.
- Never ignore your cash-flow; be aware daily what the status of your business funds are so you have the ability to re-evaluate your plans in line with the business needs.
- Sell, sell, sell, especially at the beginning. Even not-for-profit organisations have to attract customers. You may not seek to make squillions of pounds but until your business is stable and self financing, your ability to make choices will be hampered by the banks, suppliers and even customers (then you can start to choose the business that you want to do rather than having to take on every piece of business)
- Have fun, stay healthy; you need to remain energetic and appreciate being your own boss and being a boss to others.